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ARTICLE · 02 NOVEMBER 2016

UAE Wage Protection System overhauled

Kennedys
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The Federal Ministry of Human Resource & Emiratisation has issued Ministerial Decree No (739) of 2016 concerning the protection of wages (the New Decree).

United Arab EmiratesEmployment and HR
Kennedys
Kennedys
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Introduction

The Federal Ministry of Human Resource & Emiratisation has issued Ministerial Decree No (739) of 2016 concerning the protection of wages (the New Decree).  Effective from 3 October 2016, it adds further protection for employees in the UAE.

It is timely as recently we have seen a significant increase in the number of individuals approaching us with employment matters, because of employers failing to adhere to financial provisions of their employee's employment contracts.  This article analyses the New Decree and its impact on employers and employees in the UAE.

Background

The Wage Protection System (or WPS, as it is commonly referred to) was introduced by Ministerial Decree No 788 of 2009 in July 2009.  It started the process of workers being paid through an electronic system, via the UAE Central Bank.

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